Price ` 366

Fair Value 440

Upside 20%

Div Yield 4.3%

Tenure 1 Year

Sensex 29442.63

Nifty 9087.00

Group/Index

M.cap (` in cr) 5399

Equity (` In cr) 14.75

52 wk H/L ` 438.30/340

Face Value ` 1.00

NSE code BAJAJCORP

BSE code 533229

RONW 37% Market share gains from other hair oil segments ---

P/E 21.79

P/BV 8.1

EV/EBIDTA 18.66

IN `

EV (`in cr) 5381.61

BV (`in cr) 45.08

NW(`in cr) 664.98

EPS (TTM) 16.80

FY 18Est. Earnings 285.52

Equity Share Capital 14.75

1.00

14.75

EPS(FY18 Est.) 19.36

Estimated P/E Ratio 23

Estimated Price/share 440

Year End 201603 201503 201403 201303

Tax Rate % 21.52 21.09 20.48 20.30

Receivable days 8.04 4.78 2.27 4.60

Source: Google Div. Payout % 90.15 102.51 69.32 59.40

Company diversified its existing product portfolio from hair oil to skin care products under NO MARKS

brand.

No mark registered net sales of around ` 5.3 crore sales in Dec'16 quarter. The business is improving, but

new products planned will be launched only in April'17 onwards.

Company testing out the new strategy of focusing on No Marks Cream in one state at a time, the results

of which will be known in a couple of month's time. So, if the results turn out to be positive sometime in

the first quarter of next year, company will see this being rolled out in more states, thereby expand the

footprint of the strategy.The acquisition of the No marks brand is a strategic move as it enhances its presence in the

personal care market and gives us an entry in to the skin care category, would augurs well for the

company & enhance profitability, going forward.

Almond Drops has created a unique positioning for itself through initiatives like product differentiation (Almond

based), focused marketing, unique packaging (glass vs. plastic used by competition etc.)

Company is 2nd largest player in the overall hair oils segment with Key brand - Bajaj Almond Drops

Hair Oil, is the market leader with over 59.9% market share of LHO market with premium positioning

and commands one of the highest per unit price in the industry.

Company convert coconut hair oil users to light hair oil users through sampling, product innovation and

creating awareness about product differentiation including communicating the advantages of switching

to lighter hair oils. Aim for a value market share of 10% on Total Hair Oil category by 2017-18

Consumer demand, which has been subdued for the past several quarters, was significantly impacted in

November due to the cash crunch. The demand at direct retail channels nevertheless recovered in the

subsequent month mainly due to the company rolling out extra incentives and discounts to the trade to

push sales. However, the cash-driven wholesale trade channel is yet to bounce back to the pre-

demonetization levels. Going ahead, certain trends such as down trading and weakness in rural

demand, which were prevalent even before the demonetization, are likely to continue in the near

term. Raw material prices have started climbing up that may prompt companies to increase prices

in a bid to maintain profitability. The recovery in volumes is expected to be gradual and will depend

upon normalization of business in the wholesale trade channel.

Its flagship brand Bajaj Almond Drops posted a volume decline of 4%, which was lower than expected,

despite demonetization. While quarterly revenues have been the lowest in the past 11 quarters, clearly

underlining the impact of demonetization, its operational profitability was at four quarters high. Lower

expenditure on advertising and other expenses helped the company post operating margin of 32.8%.

With a market leadership in the light hair oil market, the company commands strong pricing

power.

Stock Details

B / S&P BSE

500

VALUATION (` In Cr except per share)

Corporate Governance Transparency Ratio's

Share Holding Pattern

No. of Equity Shares

INVESTMENT RESEARCH

FUNDAMENTAL COVERAGE - BAJAJ CORP LIMITED

Dated :14 th March 2017

Key Valuation Ratios

FV

Key Financial Data

Diversification of existing product portfolio Enhance profitability in future

BUY Investment Rationale

48%

9%

43%

Promoter Body Corp.Others

Page 1 www.rudrashares.com

Geographical Presence:-

Go for acquisitions tap rural market for growth 

Quarterly performance:-

Quarterly Results

Graphical presentation Q3 FY 2016-17 & 9M FY 2017 Results:

` in crores

Q3 FY 17 Q2 FY 17 Q3 FY 16 9M FY 17 9M FY 16186.39 196.14 195.70 -4.97% -4.76% 586.27 585.40 0.15%

74.97 82.11 75.56 -8.70% -0.78% 236.41 221.08 6.93%

40.22% 41.86% 38.61% - - 40.32% 37.77% -

73.47 74.17 62.69 -0.94% 17.20% 214 182.72 17.12%

39.42% 37.81% 32.03% - - 36.50% 31.21% 16.95%

57.79 58.29 49.31 -0.86% 17.20% 168.29 143.72 17.10%

31.00% 29.72% 25.20% - - 28.71% 24.55% 16.92%

3.92 3.95 3.34 -0.76% 17.37% 11.41 9.74 17.15%

Standalone Results

EBITDA

Revenue

PBT

ParticularsNine Months Ended

Crude prices have started rising and therefore the price of LLP also has risen. However, sufficient stock

of LLP with us and hence the rise of LLP has not yet affected us. Against an average price of `54.7 per kg

in the first quarter of the last financial year the LLP price in this quarter was ` 46.37 per kg. The price of

refined mustard oil has also weakened to ` 83.97 a kg as against `93.67 a kg last year in the same

quarter.

Rewarding growth of light hair-oil in the period April to December is 2.1% whereas the total hair oil has

grown by 1.5%. There is a minor change in the proportion of sales of Bajaj Almond Drops coming from

the rural areas. In the third quarter, 42.5% of its off-take from the rural areas whereas in the previous

quarter this figure was 43.6%. This actually shows that post demonetization urban off-takes have

recovered faster, the rural off-takes are still not back to the normal levels. Despite the adverse external

scenario the ASP stand has gone up to ` 24.85 crores which is 13.33% of sales, this is against ` 23.03

crores that was spent on ASP during the same quarter in the last year, last year the spend was 11.77% of

sales

RUDRA SHARES &

STOCK BROKERS LTD.

Besides, it also had higher other income of ` 13.75 crore as compared with ` 7.77 crore in the year-ago period.

Moreover, in the year-ago quarter, the company had exceptional items of ` 11.74 crore leading to lower profit.

Qu

art

erl

y &

Nin

e M

on

ths

Re

sult

s A

na

lysi

s

PAT

PBT%

PAT %

% change

Q-0-Q

% change

Y-0-YQuarter Ended

EPS

Company plans to pursue acquisitions targeting niche brands and tap rural areas to push growth,

particularly in light hair oil segment, where it aims to have a market share of 65%. Company will seek

inorganic growth opportunities in the FMCG and hair oil market as part of growth strategy to focus on

targeting niche brands which can benefit from BCL’s strong distribution network so that they can be

made pan India brands.

Emphasizing on the importance of rural market in its strategy, the company would tap the increase

in disposable income of rural India and convert rural consumer from unbranded to branded products by

providing them with an appropriate value proposition.

% change

Y-0-Y

EBITDA %

Overseas business of Bajaj Corp Ltd. is constantly increasing its global footprints with focus on

international business. market our personal care brands in more than 30 countries, with primary focus in

SAARC, Gulf & Middle-East, ASEAN and African regions. Outlook has been very encouraging with

business growing at 72% during Q3. The international business now contributes over 5% of total

turnover. The plans to enter larger markets like Russia, Indonesia and Egypt are well under way

and should see the rollout in the next couple of quarters.

Company closed the third quarter of financial year 2017 with a turnover of `186.4 crores, which translates to a

decline in turnover of around 4.75% over the same quarter in the preceding financial year. The EBITDA for the

quarter was ` 62.32 crores, it is 33.44% of sales, but is lower by 9.44% over the same quarter in the previous year.

The PBT and the PAT were ` 73.47 crores and ` 57.79 crores. The PAT for the year has grown by 17.2% over the

same quarter in the previous year.

During the quarter, the company which sells cosmetics, toiletries and other personal care products, had benefited

from lower expenses, which stood at `126.93 crore as against ` 129.41 crore in the same quarter last fiscal, down

1.91 %.

Hair Care Portfolio

Page 2 www.rudrashares.com

Hair Oil Industry

Skin care

The recovery in growth in 2015 – 16 has been lackluster however it is expected to strengthen in the coming

year in 2016 – 17 due to a number of factors such as boost in demand from the implementation of 7th Pay

recommendations and OROP.

Company Overview

Industry Overview

RUDRA SHARES &

STOCK BROKERS LTD.

Bajaj Corp Ltd is part of Bajaj Group which has interests in varied industries including Sugar, Consumer Goods,

Power Generation and Infrastructure Development. One of India’s leading FMCG companies with major brands in

hair care category such as Almond Drops, Brahmi Amla. The group has been in the business for over eight decades

and is part of one of the oldest business houses of the country, the Shishir Bajaj Group.

Manufactures and markets other major brands i.e. Brahmi Amla, Bajaj Kailash Parbat Cooling Oil and Jasmine (all

hair oil brands), Black tooth powder and skincare products under No marks brand including launching of New

Product i.e. Bajaj Amla Hair Oil

The FMCG market’s penetration levels as well as per capita consumption in most product categories like toothpaste,

skin care, hair wash etc is still low in India, which indicates the untapped market potential. Increasing population,

particularly the middle class, teenagers and the rural segment, provides an opportunity to manufacturer of FMCG

products.

Hair care market is considered an established market in India. Due to greater importance of hair care, the demand

for hair care products like regular and expert shampoos, conditioners, hair colors and hair oils are increasing

rapidly, thereby providing high momentum to the Indian hair care market. With the income levels of middle

class population growing, the hair care market in India is going through a major paradigm shift. With a surge in the

Indian markets with varieties of oil like perfume oil, light oil and many more, hair oil is expected to lead the

sector in future as well.

FMCG sector has grown at an annual average of about 11 % over the last decade. The overall FMCG market is

expected to increase at CAGR of 14.7 % to touch US$ 110.4 billion during 2012-2020, with the rural FMCG market

anticipated to increase at a CAGR of 17.7 % to reach US$ 100 billion during 2012-2025. Food products is the leading

segment, accounting for 43 % of the overall market. Personal care (22 %) and fabric care (12 %) come next in terms

of market share.

During 2015-16 the market share grew by only 0.2% and the strain on volume growths was apparent. The backbone

of the growth of the brand has been the double digit growths in the rural areas. This year the Bajaj Drops Almond

Drops brand grew by just 4.7% in volumes. In comparison the brand grew 7% in the rural areas, with this 42.4% of

the brand sales come from the rural areas.

Like almost all the other segments within the FMCG industry the Skin Care segment also did not showed a low single

digit volume growth. However in this segment specialized products such as the Anti Blemish/Anti mark Segment

grew by 21.6% in value terms. Within this segment the growth was driven by Cream segment which grew by 22.1%

on year to year basis.

Page 3 www.rudrashares.com

1. Strong brand portfolio

3. Good distribution network

4. Good brand visibility owing to TVCs and print ads campaigns

5. Non-stickiness adds to the product value

6. Packaging ensures its almond oil proposition is well visible

1. To use non-traditional promotional strategies in order to penetrate the market

RISKS & CONCERNS

Valuation Conclusion

RUDRA SHARES &

STOCK BROKERS LTD.

Company's growth will be fuelled by strengthening existing product portfolio as well as expansion in newer

categories such as skin care products under NOMARKS brand. Acquisition of the No marks brand is a strategic move

as it enhances its presence in the personal care market and gives us an entry in to the skin care category. It widens

the Company’s position in the personal care sector as Bajaj Almond Drop Hair Oil is already the third largest brand in

the overall hair oil category. The profitability of the company depends directly on the revenue generation of

this premium brand. NOMARKS has a small export sale, through which enhance several times in the next

couple of years by leveraging export infrastructure in the GCC, SAARC and the ASEAN region.

Company plans to pursue acquisitions targeting niche brands and tap rural areas to push growth, particularly in light

hair oil segment, can benefit BCL’s strong distribution network so that they can be made pan India brands.

Inflation: Inflationary tendencies in the economy and weakening of macroeconomic indicators can impact the

spending power of the consumer because of which down trading from branded products to non branded can occur

which can affect the operating performance of the company.

Competition: The company operates in the highly competitive FMCG market with competitors who may have

enhanced ability to spend more aggressively on advertising and marketing and more elasticity to respond to

changing business & economic conditions.

Regulatory framework: Any unanticipated changes in regulatory framework pertaining to economic benefits and

other related issues can affect its operations and profitability.

Estimating the share price of the company as per P/E valuation, putting the estimated P/E of FY18E at 23x &

the estimated EPS at ` 19.36, the estimated share price for next 1 year tenure turns around to be ` 440.

Therefore, we recommend to BUY this script.

SWOT Analysis

STRENGTHS

2. Enter in skin care product portfolio with NOMARKS brand

OPPORTUNITIES

2. Try to introduce a packaging which not only speaks of its almond oil proposition but also

doesn’t break that easily

Raw material risk:- Any additional increase in prices of raw materials could hurt the operating margins of

company. company is constantly exploring opportunities for hedging the cost of LLP through long term contracts,

increasing existing storage facilities for LLP, adding new suppliers etc. The volatility in costs for packaging materials

(another key input) is being tackled through advance contracts and developing new suppliers for packaging

materials.

Furthermore, product diversification, brand name as well as increase in standard of living, urbanization would

facilitate company to grow in near future.

Page 4 www.rudrashares.com

LTM 201612 201609 201606 201603

794.5 186.4 196.2 203.7 208.3

288.4 75.0 75.5 67.6 70.4

4.6 1.3 1.1 1.0 1.2

283.8 73.7 74.4 66.6 69.2

43.6 13.8 14.9 8.4 6.6

0.8 0.2 0.2 0.2 0.2

283.0 73.5 74.2 66.4 69.0

60.4 15.7 15.9 14.2 14.7

222.6 57.8 58.3 52.2 54.3

(25.1) - (6.6) (9.2) (9.2)

247.7 57.8 64.9 61.4 63.5

15.1 3.9 4.0 3.5 3.7

16.8 3.9 4.4 4.2 4.3

Particulars 201403 201503 201603 2017E 2018E 2019E

Sales 670.68 823.82 874.22 795.05 890.45 1015.12

Oth. operating Income 1.05 1.80 2.19 2.74 3.45 4.35

Total Inc. from operations 671.73 825.62 876.41 797.79 893.90 1019.46

Operating EBITA 153.06 187.4 221.81 249.54 269.66 339.42

Total Inc. from operations 671.73 825.62 876.41 797.79 893.90 1019.46

TOTAL EXPENDITURE 514.34 633.35 649.71 543.69 619.47 674.88

EBITDA 157.39 192.27 226.70 254.09 274.43 344.58

Depreciation (4.33) (4.87) (4.89) (4.55) (4.77) (5.16)

Goodwill amortization - - - - -

OTHER INCOME 40.13 31.55 28.60 52.56 97.30 123.52

Net financials

Interest income - - - - - -

Interest expenses (5.88) (0.13) (0.23) (0.86) (0.91) (1.06)

Net Financial Items (5.88) (0.13) (0.23) (0.86) (0.91) (1.06)

Reported Pre-tax profit 187.31 218.82 250.18 301.24 366.05 461.89

Reported Tax charge (38.36) (46.15) (53.83) (66.27) (80.53) (101.61)

Reported Net profit 148.95 172.67 196.35 234.97 285.52 360.27

Minorities - - - - - -

P/L OF ASSOCIATE CO. - - - - - -

148.95 172.67 196.35 234.97 285.52 360.27

Extra Ordinary income (22.72) (37.06) (36.87)

Dividend Paid (103.25) (177.00) (177.00) (176.93) (177.17) (178.15)

Retained earnings 68.42 32.73 56.22 58.04 108.36 182.12

Reported EPS 10.10 11.71 13.31 15.93 19.36 24.43

Adjusted EPS 11.64 14.22 15.81 15.93 19.36 24.43

DPS - originally declared 7.00 12.00 12.00 12.00 12.01 12.08

Opening Balance 14.75 14.75 14.75 14.75 14.75 14.75

Issued during the Period - - - - - -

Closing Balance 14.75 14.75 14.75 14.75 14.75 14.75

FV 1.00 1.00 1.00 1.00 1.00 1.00

Wtd. Avg. no. of shares 14.75 14.75 14.75 14.75 14.75 14.75

Note:- The figures shown in the brackets means NEGATIVE.

Income Statement and Estimates ( ` in Cr except per share)

Profit & Loss

302.10 366.96 462.94

171.67 209.73 233.22 234.97 285.52 360.27

EPS and Dividend

Number Of Shares

339.42 269.66 249.54 221.81 187.40

Adj. EPS

Net Inc(Reg)

Rep Net Inc

EPS

Depreciation

Taxes

RUDRA SHARES &

STOCK BROKERS LTD.

339.42

Particulars

153.06

EBT

Net Sales

Op Income

EBITDA

Misc.Inc (Exp.)

Quarterly Results (` in cr except per share) unaudited

Interest Exp

269.66

Reported Net Income after extra

ordinary items

Reported NP after min. Interest

193.19 218.95 250.41

249.54 221.81 187.40 Reported profit before othrinc.,

fin.cost,tax & excp. Item

Reported profit before othrinc.,

fin.cost,tax & excp. Item

Profit from ordinary act. Before

Fin.Cost ,TAX & Exp.Items

153.06

Extraord. Items

Page 5 www.rudrashares.com

201403 201503 201603 2017E 2018E 2019E

Equity & Liabilities

Shareholders' Fund

Share Capital 14.75 14.75 14.75 14.75 14.75 14.75

Reserves and Surplus 504.49 473.81 466.05 524.09 632.44 814.56

- - - - - -

Total Shareholders' Fund 519.24 488.56 480.80 538.84 647.19 829.31

Non-Current Liabilities

Long-term Borrowings - - - - - -

Other Long term Liabilities - - - - - -

Deferred Tax Liability 0.39 0.55 0.68 0.82 1.02 1.23

Long term Provisions - - - - - -

Total Non-Current Liabilities 0.39 0.55 0.68 0.82 1.02 1.23

Current Liabilities

Short term Borrowings - - 10.00 11.21 12.57 14.10

Trade Payables 40.55 51.43 43.51 39.89 60.61 73.40

other current liability 19.10 27.38 30.90 34.30 40.23 45.88

Short term Provisions - - - - - -

Total current Liabilities 59.65 78.81 84.41 85.41 113.41 133.38

Total Equity & Liabilities 579.28 567.92 565.89 625.09 761.61 963.94

Assets

Non-Current Assets

Fixed Assets

Tangible fixed Assets 193.55 142.42 97.16 103.78 111.53 120.64

G/W on consolidation 43.00 43.00 43.00 43.00 43.00 43.00

Non-current Investments

Long term Loans & advances 0.69 0.67 10.90 12.22 13.70 14.93

Other Non current Assets

Deferred tax receivables

Total Non-Current Assets 237.24 186.09 151.06 159.00 168.22 178.57

Current Assets

Current Investments 156.84 183.66 270.69 295.90 320.80 370.50

Inventories 39.45 39.27 50.19 43.08 59.00 66.27

Trade Receivables 8.37 13.26 25.35 23.14 29.50 35.68

Cash & cash Equivalents 129.20 134.18 57.79 93.32 173.28 301.28

Short Term Loans & advances 3.78 4.65 4.26 4.28 4.54 4.81

Other current Assets 4.40 6.80 6.55 6.38 6.26 6.83

Total current Assets 342.04 381.82 414.83 466.09 593.38 785.37

Total Assets 579.28 567.92 565.89 625.09 761.61 963.94

Cash & cash equivalents 129.20 134.18 57.79 93.32 173.28 301.28

Other int. bearing assets 156.84 183.66 270.69 295.90 320.80 370.50

Interest-bearing debt 19.10 27.38 40.90 45.52 52.80 59.97

Net interest-bearing debt - - - - - -

Net gearing (%) - - - - - -

Tangible assets

Gross capex - (0.77) (17.00) (11.17) (12.51) (14.27)

Sale of fixed assets - 0.04 0.19

Net capex - (0.73) (16.81) (11.17) (12.51) (14.27)

Depreciation tangibles - (4.87) (4.89) (4.55) (4.77) (5.16)

Note:- The figures shown in the brackets means NEGATIVE.

RUDRA SHARES &

STOCK BROKERS LTD.

BALANCE SHEET

Particulars

Investments

Minority Interests

Page 6 www.rudrashares.com

201403 201503 201603 2017E 2018E 2019E

EBIT - 218.95 250.41 302.10 366.96 462.94

Depreciation - 4.87 4.89 4.55 4.77 5.16

Depreciation (ex goodwill) - 4.87 4.89 4.55 4.77 5.16

Movement in Inventories - 0.18 (10.92) 7.11 (15.92) (7.27)

Movement in Debtors - (4.89) (12.09) 2.21 (6.36) (6.18)

Movement in Creditors - 10.88 (7.92) (3.62) 20.72 12.79

Movement in other current Liab. 8.28 3.52 3.40 5.92 5.65

Other W.C Inc./decrease - 14.56 18.80 - - -

Change in W.C - 29.01 (8.61) 9.11 4.36 5.00

Tax paid - (46.15) (53.83) (66.27) (80.53) (101.61)

Operating Cash Flow - 206.68 192.86 249.49 295.56 371.48

Net interest - (0.13) (0.23) (0.86) (0.91) (1.06)

Cash Earnings - 206.55 192.63 248.63 294.65 370.42

Gross CapEx - (0.77) (17.00) (11.17) (12.51) (14.27)

Sale of fixed assets - 0.04 0.19 - - -

Net CapEx - (0.73) (16.81) (11.17) (12.51) (14.27)

Free Cash Flow pre dividend - 205.82 175.82 237.46 282.13 356.15

Dividend - (177.00) (177.00) (176.93) (177.17) (178.15)

- 28.82 (1.18) 60.53 104.97 178.00

Net acqui./disposals - - - - - -

Net cash flow - 28.82 (1.18) 60.53 104.97 178.00

201403 201503 201603 2017E 2018E 2019E

Return on assets 59.27% 36.56% 41.14% 39.46% 41.18% 41.76%

Return on equity 66.12% 41.62% 48.12% 46.09% 48.15% 48.80%

ROCE 58.87% 37.12% 45.65% 48.80% 45.33% 45.84%

EBIT Margin 28.76% 26.52% 28.57% 37.87% 41.05% 45.41%

Pre tax margin 27.88% 26.50% 28.55% 37.76% 40.95% 45.31%

Net Profit Margin 25.56% 25.40% 26.61% 29.45% 31.94% 35.34%

Total asset turnover 2.32 1.44 1.55 1.34 1.29 1.18

Fixed asset turnover 6.94 4.91 7.32 7.94 8.30 8.78

Equity turnover 2.59 1.64 1.81 1.56 1.51 1.38

Current Ratio 5.73 4.84 4.91 5.46 5.23 5.89

Quick Ratio 5.07 4.35 4.32 4.95 4.71 5.39

Cash Ratio 2.17 1.70 0.68 1.09 1.53 2.26

Receivable Days 2.27 4.78 8.04 11.09 10.75 11.67

Inventory Days 14.00 22.68 25.13 31.31 30.07 33.87

Payable Days 13.36 26.51 26.23 28.37 28.86 35.85

Conversion Cycle (Days) 2.91 0.95 6.94 14.03 11.95 9.69

Financial Leverage Effect 0.92 0.92 0.97 1.08 0.96 0.96

Debt to Capital 0.04 0.05 0.08 0.08 0.08 0.07

Debt to Equity 0.04 0.06 0.09 0.08 0.08 0.07

Note:- The figures shown in the brackets means NEGATIVE.

RATIO ANALYSIS

Particulars

RUDRA SHARES &

STOCK BROKERS LTD.

CASH FLOW ANALYSIS

Particulars

Free Cash Flow post Dividend

Page 7 www.rudrashares.com

Disclosures :

1) Business Activity :

2)

3)

4)

Sr. No. Yes/No

a) No

b) No

c) No

5)

Sr. No. Yes/No

a) No

b) No

c) No

6) Other Disclosures:

Yes/No

Sr. No.

a) No

b) No

c) No

Disclosures

The research analyst has served as an officer,director,employee of the subject company.

Rudra or its research analyst has been engaged in market making activity for the subject

company.

Rudra or its or associates have received any compensation from the subject company in

the past twelve months.

Rudra or its associates have received any compensation or other benefits from the subject

company or third party in connection with the research report .

RUDRA SHARES &

STOCK BROKERS LTD.

Rudra or its research analysts, or his/her relative or associates have actual/beneficial

ownership of one per cent or more securities of the subject company.

Rudra or its associates have managed or co-managed public offering of securities for the

subject in the past twelve months.

Disclosures

Rudra or its associates have received any compensation from the subject company in the

past twelve months.

Rudra or its research analysts, or his/her relative or associate has any direct or indirect

financial interest in the subject company.

Disclosures with regard to receipt of compensation :

The Research report is issued to the registered clients. The Research Report is based on the facts, figures and

information that are considered true, correct and reliable. The information is obtained from publicly available media

or other sources believed to be reliable. The report is prepared solely for informational purpose and does not

constitute an offer document or solicitation to buy or sell or subscribe for securities or other financial instruments

for clients.

Disclosures with regard to ownership and material conflicts of interest :

Rudra or its research analysts, or his/her relative or associate has any other material

conflict of interest at time of publication of the research report.

Disclosures

Rudra Shares & Stock Brokers Limited is engaged in the business of providing broking services & distribution of

various financial products. RUDRA is also registered as a Research Analyst under SEBI(Research Analyst)

Regulations, 2014. SEBI Reg. No. INH100002524.

Disclosures & Disclaimers

Terms & Conditions of issuance of Research Report:

There has been no instance of any Disciplinary action, penalty etc. levied/passed by any regulation/administrative

agencies against RUDRA and its Directors. Pursuant to SEBI inspection of books and records of Rudra, as a Stock

Broker, SEBI has not issued any Administrative warning to Rudra.

Disciplinary History :

Page 8 www.rudrashares.com

RUDRA SHARES & STOCK BROKERS LTD.Phone: +91 – 512 – 67011001

Disclaimers:

This Research Report (hereinafter called report) has been prepared and presented by RUDRA SHARES & STOCK BROKERS

LIMITED, which does not constitute any offer or advice to sell or does solicitation to buy any securities. The information presented

in this report, are for the intended recipients only. Further, the intended recipients are advised to exercise restraint in placing any

dependence on this report, as the sender, Rudra Shares & Stock Brokers Limited, neither guarantees the accuracy of any information

contained herein nor assumes any responsibility in relation to losses arising from the errors of fact, opinion or the dependence

placed on the same. Despite the information in this document has been previewed on the basis of publicly available information, internal data , personal

views of the research analyst(s)and other reliable sources, believed to be true, we do not represent it as accurate, complete or

exhaustive. It should not be relied on as such, as this document is for general guidance only. Besides this, the research analyst(s) are

bound by stringent internal regulations and legal and statutory requirements of the Securities and Exchange Board of India( SEBI)

and the analysts' compensation was, is, or will be not directly or indirectly related with the other companies and/or entities of Rudra

Shares & Stock Brokers Ltd and have no bearing whatsoever on any recommendation, that they have given in the research report.

Rudra Shares & Stock Brokers Ltd or any of its affiliates/group companies shall not be in any way responsible for any such loss or

damage that may arise to any person from any inadvertent error in the information contained in this report. Rudra Shares & Stock

Brokers Ltd has not independently verified all the information, which has been obtained by the company for analysis purpose, from

publicly available media or other sources believed to be reliable. Accordingly, we neither testify nor make any representation or

warranty, express or implied, of the accuracy, contents or data contained within this document. Rudra Share & Stock Brokers Ltd

and its affiliates are engaged in investment advisory, stock broking, retail & HNI and other financial services. Details of affiliates are

available on our website i.e. www.rudrashares.com.

We hereby declare, that the information herein may change any time due to the volatile market conditions, therefore, it is advised to

use own discretion and judgment while entering into any transactions, whatsoever.

Individuals employed as research analyst by Rudra Shares & Stock Brokers Ltd or their associates are not allowed to deal or trade in

securities, within thirty days before and five days after the publication of a research report as prescribed under SEBI Research

Analyst Regulations.Subject to the restrictions mentioned in above paragraph, we and our affiliates, officers, directors, employees and their relative may:

(a) from time to time, have long or short positions acting as a principal in, and buy or sell the securities or derivatives thereof, of

Company mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or profits.

RUDRA SHARES &

STOCK BROKERS LTD.

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